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And, like many European governments, state legislatures and governors are reluctant to impose the necessary pain.
"The paper's position has been a big driver for governments, state and federal," Clennell writes.
Policy changes must overcome opposition from any number of vested interests, including local governments, state banks and rich, politically connected families.
"It's going to mean higher borrowing costs for local governments, state governments," said Mike Nicholas, chief executive of the Bond Dealers of America.
And for decades Australian governments, state and federal, have worked on the assumption that building as many mines as possible would make Australians rich.
At the least, that is a cast of thousands: Audi sold 313,000 cars in China in 2011, and the research firm LMC Automotive estimated this year that a fifth of sales go to governments, state institutions and state-owned companies.
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Governance through governments (state-based institutions with formal authority and powers to manage and regulate social actors) is familiar.
Local governments, state-owned enterprises and banks lost all inhibition, piling on debt in pursuit of an investment-led recovery.
In recent years local governments, state-owned enterprises and neighbourhood committees have set up a network of weiwen offices charged with looking out for signs of unrest.
The continued rise in debt has instead been driven by three groups: special-purpose vehicles controlled by local governments, state-owned enterprises and property developers (see chart).The dukes of moral hazardThis concentration should make it easier to defuse the risks.
After starting in the traditional manner by gunning for some highly placed real or potential political foes, the purge has widened into provincial governments, state-owned enterprises, the military and the regime's main broadcasting station.
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